PPGC’s Decision to Cancel its Contract for the Purchase of Gas from Leviathan Could Be Followed by Other Customers

摘要

Palestine Power Generation Company (PPGC), which in January 2014 became the first company in the region to sign a contract for the purchase of gas from Israel’s Leviathan field AOG, 16 Jan., 2014), announced on 10 March that it had conditionally canceled its contract. According to a statement released by the gas subsidiaries of Delek Group, Delek Drilling and Avner Oil Exploration, the reasons given by PPGC are the consortium’s failure to abide by the conditions laid down in the agreement and, more particularly, the refusal of the Antitrust Authority to approve the deal and the delay in securing approval for the Leviathan field’s development plan as well as other regulatory approvals, as set out in the contract.